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  • Jul 3, 2026, 7:23 PM

    @syntaxseed So one interesting thing here is the subsidies are relative to "API pricing", not necessarily OpenAI/Anthropic's marginal cost per token.

    My guess is that OpenAI doesn't make much on someone using a $200 Codex plan flat-out, but that's after a ~40x subsidy vs. pay-per-token.

    We don't know how big their models are, but serving costs at scale for bigger open-weights models are on the order of 99% less than GPT-5.5 costs.

    Inference being a money-printer is why Nvidia can charge $$$.

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  • Jul 3, 2026, 7:52 PM

    @syntaxseed my back-of-envelope first impression after being involved in a model-training effort is "it takes as much labour to train an LLM to do a task as it does to write a deterministic algorithm for the same task". The only reason executives are able to delude themselves that LLM tech is financially viable is because the training data is usually stolen from the community that produced it.

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